We are in the process of getting our first mortgage. While on the For Sale By Owner website, I filled out a form requesting information from mortgage companies. Quicken Loans contacts me within a day. After being called a few times, we decided to go with them. So we give them in $500 good faith money, which will be deducted from the mortgage.
The initial good faith estimate is for $150K with us putting $15K down and about $5,865 in closing/escrow. The banker tells us to find the house we want. So we look around and find the home we want. During this process, we don't hear from Quicken.
We find our house for a lower amount and now the real fun begins. We are happy with Quicken Loans up until now. We are 2 weeks from closing and we received (upon request) the good faith estimate for the actual costs. They show closing costs/escrow has jumped to $9,555. Ouch! The $500 good faith money is on the closing documents, just like I was told it would be.
We questioned our banker about the difference and he explains the first document was just an estimate. The insurance was estimated at first at a cost of $250 while the real cost should have be closer to $1000 or higher.
We also received the Truth in Lending statement. It shows we are at rate of 7.214% and not the 6.5% rate we had been told we were locked into. The Amount Financed is wrong also on this form.instead of $126K, it is $121K. I hate to think what this actually means. Our banker tried to explain it to me, but it did not make any sense.
We contacted our bank that night and managed to get a better deal. Luckily we have changed our mortgage before any other surprises popped up. Too bad we have probably lost our $500. If we had checked out our options before handing them the money, we would have been better off.
Recommended:
No
0 comments